April 23, 2020

The procedures for purchasing apartments have been resumed at a cost to the buyer

Calcalist, Amit Gazit, 23.04.2020

The procedure for buying apartments for the buyer resumed yesterday, after it was discontinued on March 18 because of the Corona regulations that prohibited meetings and gatherings. The lack of purchasers over time can burden construction companies, so the construction minister Yifat Shashon Biton has formulated a new procedure tailored to the situation.

So far, the winners have been allocated 14 days between choosing an apartment and signing a contract. Anyone who did not sign a contract within 14 days had his lottery canceled. The new outline extended the 45-day period to allow lottery winners to examine their financial situation in the shadow of the Corona crisis. Winners who wish to do so will be able to sign the contract before the end of the 45 days, and the construction companies have been given the option to extend the period at their discretion.

In the case of winners who were able to choose an apartment before the crisis, the 45-day count begins today. So if by early June they do not sign a contract and do not reach an agreement with the construction company, their winnings will be canceled.

Those who have not yet selected an apartment will be invited in the coming days to a selection procedure that will be carefully managed according to the Ministry of Health's guidelines in separate rooms, with as few people as possible. According to the Ministry of Construction, some 2,100 winners are now waiting to be selected.

When signing the contract, buyers pay the construction company a first payment of 7% of the price of the apartment. Thus, enabling the signing of the contracts to flow money to the construction companies will enable them to increase their activity in the sector that is slowing down.

Shasha Biton: "In order to preserve the rights of the buyers and to allow the continued price to the buyer even during this challenging period, I instructed to extend the time required for the signing of the contracts.

Elazar Bamberger, Director General of the Ministry of Construction and Housing: "The cost to the consumer is currently a significant lever for the stability of the construction industry.